Later this week, the Joint Review Panel investigating the proposed Site C hydroelectric dam and generating station will hold hearings in Prince George. The project is attracting a lot of attention, and for good reason. It will have a significant impact on both our economy and our environment. On balance, I believe B.C. Hydro should proceed with Site C. However, I also think it should be the last new generation project BC Hydro ever builds.
The impact of BC Hydro on the economy of modern British Columbia cannot be overstated. In the 50s and 60s, BC Hydro built a series of large hydroelectric dams, mostly along the Peace and Columbia Rivers. This massive industrial program allowed us to convert our vast, raw, hydroelectric resource into a source of cheap, reliable and clean electricity. This cheap and reliable power spurred on pretty much every industry we have in B.C; especially in the north. Our mines, sawmills, and pulp and paper mills would never have been built without the cheap electricity provided by this first generation of hydro dams.
Today, B.C. is on the verge of an industrial renaissance at least on the scale of what we saw during the original boom of the 50s and 60s. And this boom is going to need even more electricity than the first one. For example, just one LNG plant will use the equivalent of all the power from Site C. So, do we need the power? Yes, we do. In fact, Site C was first proposed in 1980 to meet growing electricity demand. Once built, Site C will likely only be able to meet part of this explosion in power demand.
What about the environmental impact? The truth is that the to a large extent, the damage has already been done to the Peace River system. The WAC Bennett dam, (Site A) and the Peace Canyon dam, (Site B) have significantly changed the ecology of the Peace River. Site C will also have local environmental impacts; all human activity does. However, when it comes to the Peace River, the marginal impact of Site C over and above the existing dams is minimal. For this reason, I think the net environmental impact of Site C is acceptable.
Where I am most concerned about Site C is when it comes to the cost. BC Hydro estimates site C will cost about $83 per megawatt hour. Can BC Hydro really build it for that price? Given their history of cost overruns, (e.g. Northwest transmission line), and the history of cost overruns in general by energy mega-project around the world, I think the answer is probably not. This is a risk that you and I, as both owners and customers of BC Hydro, will have to bear. The other question is, are there cheaper alternatives? The answer here is not yet, but soon. The cost of renewable energy such as wind and biomass has been dropping steadily. We should be pushing forward with a renewable energy program in B.C. But even with a rapid deployment of renewables, we would still need Site C and in many ways Site C would compliment renewables.
When balancing the economic and social issues associated with Site C, I firmly believe that it should proceed. However, I think this is the last of the mega-projects BC Hydro should undertake. After Site C, BC Hydro should focus on operating the existing electricity system and allow the private sector to meet any incremental power needs.
